Road to profitability: PAL?s debt restructuring plan cleared by SEC
Philippine Airlines (PAL) has secured the Securities and Exchange Commission?s nod to pursue an equity restructuring program, paving the way for the entry of an investor group.
In a regulatory filing, PAL Holdings said the flag carrier?s additional paid-in capital of P13.64 billion would be used to eliminate its P13.57 billion deficit as of the end of December last year.
The deficit was accumulated due to the company?s losses prior its recent three-year period of profitability.
This would allow PAL to attract potential investors and declare dividends.
PAL president and chief operating officer Jaime J. Bautista earlier said the airline was considering taking in a foreign investor, which would provide equity and management expertise. It had tapped Morgan Stanley as financial advisor.
The entry of a foreign investor is seen to bolster PAL?s bid to become a five-star, full-service carrier by 2020.